Tuesday, April 30, 2013

Labor strikes & social struggles increase exponentially

Egypt
saw almost four times as many workers' protests last year – in both
public and private sectors – as it did in 2010, according to new report
by local NGO

The Egyptian Centre for Social and Economic Rights (ECESR) on Sunday
issued a new report documenting labour strikes that took place in Egypt
last year.

According to the report, in 2012, Egypt witnessed 1,969 protests by workers - in the government, public and private sectors - marking a
considerable increase compared to 2010, when only 530 protests were
recorded.

The 2012 protests listed in the report represent one of the highest
levels of social struggle worldwide and include demonstrations, sit-ins,
road blockages and strikes.

Thirty-six percent of these protests were staged to demand better pay,
the report stated, going on to note that roughly five major labour
protests per day were currently taking place in Egypt.

The report went on to assert that some 380 protests had been held to protest unemployment or demand permanent work contracts.

Another 70, meanwhile, had been prompted by arbitrary practices by management against workers.

The report further cited around 111 protests against 'corrupt' or
'failed' managements. It cited another 29 industrial actions in which
workers demanded the re-operating of factories and companies, in
addition to the reopening of companies that had been renationalized via
court order.

Many of these verdicts, however, were never applied. Recently, Prime
Minister Hisham Qandil was slapped with a suspended one-year jail
sentence for failing to implement an administrative court ruling
ordering the renationalisation of Egypt's Tanta Flax and Oil Company.

According to a recent report by the International Development Centre,
an Egyptian rights organisation, Egypt is currently witnessing a sharp
spike in labour and other social protests, with 1,354 protests recorded
in March alone compared to 864 protests during the previous month. This
means an average of 44 protests per day, or 1.8 protests every hour.

The report also states that the protests were held by 40 different
social categories, with most being staged by politically unaffiliated
individuals.

Within the past two years, the report went on, major strikes in Egypt
involved railway workers, public transport workers, doctors and police
officers.

After the January 25 Revolution ousted former president Hosni Mubarak,
expectations were high that many of Egypt's social and economic woes –
which many saw as the triggers of the uprising – would be minimised, and
that demands for better working conditions and pay would be met.

According to the ECESR report, however, the number of strikes increased
when President Mohamed Morsi won the elections, after which hopes were
high for economic stability following months of uncertainty.

However, since 2011, Egypt has instead seen weak economic growth and
rising costs of living. Government attempts to reduce subsidies have
also led to rising prices for basic utilities, including electricity and
natural gas.

What's more, the local currency has suffered a sharp devaluation this year due to dwindling foreign currency reserves.

The government is currently trying to modify an economic reform plan in
hopes of obtaining a $4.8 billion loan from the International Monetary
Fund after the latter deemed an earlier plan 'weak.' A modified version
of the plan is expected to further reduce energy subsidies and raise
sales taxes.